UK - Financial education must be provided in schools and the workplace if the savings gap is to be closed, Invesco chief David Butcher says.
Butcher, who is head of corporate affairs, believes while providing financial education in schools will help remedy the problem in the long-term, the gap in adult financial literacy must be addressed immediately.
To that end, employers, providers and the state must work together to provide financial education in the workplace. Adults need financial education he said, because without it they cannot understand or put the various amounts of financial information available to them into context.
Butcher highlighted research in the US Journal of Compensation and Benefits which found that financial education has a “significant” impact on workers’ savings habits.
The research found that once 401(k) scheme members are put through financial education programmes, 17% increase their contributions, while 37% increase their allocations to other savings.
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